Lennar Corporation Announces Dividend and Millrose Spin-off Dates

On January 10, 2025, Lennar Corporation, a leading U.S. homebuilder, made a significant announcement regarding its corporate restructuring. The Board of Directors declared a dividend and outlined the timeline for the anticipated taxable spin-off of nearly 80% of its Millrose Properties, Inc. subsidiary. This move marks an essential transition for Lennar towards a 'land light' manufacturing homebuilding model, as stated by Executive Chairman and Co-CEO Stuart Miller.

What You Need to Know About the Spin-off

The proposed distribution will occur before the markets open on February 7, 2025. Lennar stockholders as of January 21, 2025, will receive one share of Millrose Class A or Class B stock for every two shares of Lennar Class A or Class B stock they own. Importantly, those who purchase Lennar shares after this record date will not qualify for the Millrose spin-off.

Trading for Millrose Class A stock will commence on the New York Stock Exchange (NYSE) under the symbol 'MRP WI' around February 5, 2025, with standard trading beginning two days later under the symbol 'MRP.' This initiative will allow investors to engage in trading a company focused primarily on the acquisition of land and home development.

Class Structure and Voting Rights

Millrose will feature two classes of stock: Class A and Class B. While both classes share similar economic interests, they differ in voting rights—each Class A share grants one vote, while each Class B share affords ten votes. Notably, Millrose has opted not to list the Class B stock on any securities exchanges, which may impede its trading market.

Lennar stockholders will automatically receive Millrose Class A shares unless they elect to choose Class B shares during an election period from January 21 to February 3, 2025. This choice will not impact the number of shares received—only the class arrangement.

Tax Implications and Shareholder Actions

It is vital for Lennar shareholders to note that the distribution of Millrose shares will be taxable. Detailed information about Millrose and the spin-off has been submitted to the SEC in a registration statement and is accessible via their official website or directly from Millrose Properties.

The completion of this spin-off remains contingent on various conditions, and Lennar's Board maintains the discretion to halt the process at any point prior to distribution.

About Lennar Corporation

Founded in 1954, Lennar Corporation has established itself as one of the premier builders of quality homes across the United States. The company develops affordable housing and offers mortgage services through its Financial Services unit. Lennar is also prominent in the multifamily rental property segment, demonstrating its comprehensive approach to meeting diverse housing needs.

About Millrose Properties, Inc.

Once the spin-off is finalized, Millrose will operate as an independent publicly traded entity, engaging primarily in land purchases, horizontal developments, and home site financing options. Its portfolio is expected to include projects not only for Lennar but also for other builders and developers.

This strategic movement reflects Lennar's commitment to enhancing operational efficiencies and preparing for future growth within a competitive landscape.

As the execution date approaches, investors will need to keep a close watch on announcements regarding Millrose to capitalize on this evolving opportunity in the housing market.